Markel Group (MKL) came out with quarterly earnings of $56.48 per share, beating the Zacks Consensus Estimate of $23.58 per share. This compares to earnings of $26.15 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 139.53%. A quarter ago, it was expected that this insurer would post earnings of $21 per share when it actually produced earnings of $16.56, delivering a surprise of -21.14%.Over the last four quarters, the company ...

RICHMOND, Va., Jan. 31, 2024 /PRNewswire/ -- Markel Group Inc. (NYSE: MKL) today reported its financial results for the year ended December 31, 2023. "We enjoyed excellent returns in 2023 from Markel Ventures, our investment operations, and many portions of our insurance business," said Thomas S. Gayner, Chief Executive Officer. "While we remain focused on some areas of improvement for our insurance operations, our three-engine system continues to drive profitable growth. Strong operating cash flows from ea ...

RICHMOND, Va., Jan. 25, 2024 /PRNewswire/ -- Markel Group Inc. (NYSE: MKL) announced today it will hold a conference call on Thursday, February 1, 2024 beginning at 9:30 am (Eastern Time) to discuss quarterly and year end results and business developments.Investors, analysts and the general public may listen to the call via live webcast at ir.mklgroup.com. The call may be accessed telephonically by dialing (888) 660-9916 in the U.S., or (646) 960-0452 internationally, and providing Conference ID: 4614568. A ...

LONDON, Jan. 18, 2024 /PRNewswire/ -- Markel, the insurance operation within Markel Group Inc. (NYSE: MKL), has appointed Sebastian Rice as a Senior Underwriter and head of Business Development for Europe – in a strategic move that will accelerate growth across Markel's trade credit portfolio, while strengthening the businesses' leadership position within the excess of loss (XoL) trade credit market. Sebastian Rice, Senior Underwriter and head of Business Development for Europe - Trade Credit Based at M ...

Foxquilt, North American digital MGA, will broaden distribution of their proprietary insurance products in the US through a key collaboration with Markel. CHARLOTTE, N.C., Jan. 16, 2024 /PRNewswire/ - Foxquilt, a leading North American company specializing in embedded small business insurance technology, is thrilled to announce a strategic and long-term capacity relationship with global specialty insurance provider, Markel. This meaningful collaboration spearheads embedded insurance innovation for more sma ...

Markel Group Inc. (MKL) has been in investors’ good books on the back of a niche focus, improved pricing, effective risk management, strategic buyouts, solid capital position and prudent capital deployment.Growth ProjectionsThe Zacks Consensus Estimate for MKL’s 2024 earnings is pegged at $93.75 per share, indicating a 16.7% increase from the year-ago reported figure on 8.1% higher revenues of $15.64 billion.Northbound Estimate RevisionThe Zacks Consensus Estimate for 2024 earnings has moved 1.2% north in t ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ___________________________________________ FORM 10-Q ______________________________________________________________________________________ ☒ Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the quarterly period ended September 30, 2023 or ☐ Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the transition period from _______ to _____ ...

Markel Group Inc. (NYSE:MKL) Q2 2023 Earnings Conference Call August 3, 2023 9:30 AM ET Company Participants Tom Gayner – Chief Executive Officer Teri Gendron – Chief Financial Officer Jeremy Noble – President-Insurance Conference Call Participants Mark Hughes – Truist John Fox – Fenimore Asset Management Scott Heleniak – RBC Capital Markets Operator Good morning, and welcome to the Markel Group Second Quarter 2023 Conference Call. All participants will be in listen-only mode. [Operator Instructions] After ...

PART I. FINANCIAL INFORMATION [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) Markel Group's financial statements show increased total assets and a significant turnaround to net income driven by strong investment gains [Consolidated Balance Sheets](index=3&type=section&id=Consolidated%20Balance%20Sheets) Consolidated balance sheets show total assets increased to **$52.18 billion** by June 30, 2023, driven by investments and equity growth Consolidated Balance Sheet Highlights (unaudited) | (dollars in thousands) | June 30, 2023 | December 31, 2022 | | :--- | :--- | :--- | | **Total Investments** | $23,473,613 | $22,198,009 | | **Total Assets** | $52,184,133 | $49,791,259 | | **Total Liabilities** | $37,480,610 | $36,054,220 | | **Total Shareholders' Equity** | $14,185,499 | $13,151,094 | [Consolidated Statements of Income (Loss) and Comprehensive Income (Loss)](index=4&type=section&id=Consolidated%20Statements%20of%20Income%20%28Loss%29%20and%20Comprehensive%20Income%20%28Loss%29) Consolidated income statements show a significant turnaround to net income for Q2 and H1 2023, driven by substantial net investment gains Key Income Statement Data (Unaudited) | (dollars in thousands, except per share data) | Quarter Ended June 30, 2023 | Quarter Ended June 30, 2022 | Six Months Ended June 30, 2023 | Six Months Ended June 30, 2022 | | :--- | :--- | :--- | :--- | :--- | | **Total Operating Revenues** | $4,142,536 | $1,792,207 | $7,785,925 | $4,398,443 | | **Operating Income (Loss)** | $970,064 | $(1,176,794) | $1,723,960 | $(1,217,054) | | **Net Income (Loss) to Common Shareholders** | $677,511 | $(933,796) | $1,166,163 | $(985,537) | | **Diluted Net Income (Loss) Per Common Share** | $50.09 | $(69.15) | $87.34 | $(75.56) | [Consolidated Statements of Changes in Equity](index=5&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Equity) Total shareholders' equity increased to **$14.19 billion** by June 30, 2023, driven by net income and other comprehensive income, offset by repurchases Changes in Equity - Six Months Ended June 30, 2023 | (dollars in thousands) | Amount | | :--- | :--- | | **Equity at Dec 31, 2022** | $13,151,094 | | Net Income | $1,184,163 | | Other Comprehensive Income | $26,751 | | Repurchase of common stock | $(187,161) | | Preferred stock dividends | $(18,000) | | **Equity at June 30, 2023** | $14,185,499 | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Condensed cash flow statements show increased net cash from operations, with cash used in investing and financing for securities and debt/stock repurchases Cash Flow Summary - Six Months Ended June 30 | (dollars in thousands) | 2023 | 2022 | | :--- | :--- | :--- | | **Net Cash Provided By Operating Activities** | $1,008,621 | $920,989 | | **Net Cash Used By Investing Activities** | $(373,561) | $(403,361) | | **Net Cash Used By Financing Activities** | $(629,881) | $(386,709) | [Notes to Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Notes detail accounting policies, segment performance, and investment composition, highlighting ASU No. 2018-12 adoption and strong Investing segment performance - Effective January 1, 2023, the Company adopted **ASU No. 2018-12**, changing accounting for long-duration contracts and requiring restatement of prior periods, primarily affecting life and annuity benefits[25](index=25&type=chunk)[26](index=26&type=chunk) - In March 2023, the Company completed a retroactive reinsurance transaction, ceding its UK motor casualty liabilities for payments of **$125.1 million**[78](index=78&type=chunk) - In March 2023, the company retired **$250.0 million** of its 3.625% unsecured senior notes[89](index=89&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=30&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses company performance across Insurance, Investments, and Markel Ventures engines, highlighting H1 2023 improvements from investment gains and strong financial position [Our Business](index=30&type=section&id=Our%20Business) Markel Group operates through three engines: Insurance, Investments, and Markel Ventures, aiming for long-term common share price growth - Markel Group operates as a holding company with three core engines: **Insurance, Investments, and Markel Ventures**[114](index=114&type=chunk)[115](index=115&type=chunk)[116](index=116&type=chunk) - The company's primary measure of financial success is the long-term growth of its stock's market price, achieving a **5%** compound annual growth rate over the five years ended June 30, 2023[117](index=117&type=chunk) - The Insurance engine operates through three platforms: **Underwriting, Insurance-Linked Securities (ILS), and Program Services**[118](index=118&type=chunk) [Results of Operations](index=34&type=section&id=Results%20of%20Operations) Total operating revenues for H1 2023 increased to **$7.8 billion**, driven by significant net investment gains, leading to **$1.21 billion** comprehensive income Comprehensive Income (Loss) to Shareholders Summary | (dollars in thousands) | Six Months Ended June 30, 2023 | Six Months Ended June 30, 2022 | | :--- | :--- | :--- | | **Insurance operations profit** | $325,289 | $372,920 | | **Investing segment profit (loss)** | $1,175,853 | $(1,746,757) | | **Markel Ventures segment profit** | $222,818 | $156,783 | | **Net income (loss) to shareholders** | $1,184,163 | $(967,537) | | **Comprehensive income (loss) to shareholders** | $1,210,914 | $(1,729,602) | - The significant improvement in comprehensive income for H1 2023 was primarily due to pre-tax net investment gains on equity securities of **$859.2 million** (compared to **$1.9 billion** losses in H1 2022) and pre-tax net unrealized gains on fixed maturity securities of **$41.2 million** (compared to **$1.1 billion** losses in H1 2022)[137](index=137&type=chunk) [Financial Condition](index=47&type=section&id=Financial%20Condition) Company financial condition strengthened, with debt-to-capital ratio decreasing to **21%** and invested assets growing to **$28.7 billion**, supported by repurchases and credit facility - The consolidated debt-to-capital ratio improved to **21%** at June 30, 2023, down from **24%** at December 31, 2022, due to debt retirement and increased shareholders' equity[198](index=198&type=chunk) - The company repurchased **$187.2 million** of its common stock during the first six months of 2023, with **$323.8 million** remaining available for repurchases as of June 30, 2023[201](index=201&type=chunk)[208](index=208&type=chunk) - In June 2023, the company entered into an amended and restated corporate revolving credit facility providing up to **$300 million** of capacity, with no outstanding borrowings as of June 30, 2023[203](index=203&type=chunk) [Critical Accounting Estimates](index=49&type=section&id=Critical%20Accounting%20Estimates) Critical accounting estimates involve determining reserves for unpaid losses and loss adjustment expenses, and valuing goodwill and intangible assets, requiring judgment and review - The company's critical accounting estimates involve determining **reserves for unpaid losses and loss adjustment expenses**, and the **valuation of goodwill and intangible assets**[210](index=210&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=50&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Primary market risks include equity price, interest rate, and foreign currency exchange rate risks, with no material changes in these or credit risk exposures in H1 2023 - The company's main market risks are **equity price risk, interest rate risk, and foreign currency exchange rate risk**[220](index=220&type=chunk) - There were no material changes in the company's market risk or credit risk exposures in the first six months of 2023 compared to the 2022 Annual Report[220](index=220&type=chunk)[222](index=222&type=chunk) [Item 4. Controls and Procedures](index=51&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls and procedures were effective as of June 30, 2023, with no material changes to internal control over financial reporting in Q2 2023 - The Principal Executive Officer and Principal Financial Officer concluded that the company's **disclosure controls and procedures were effective** as of June 30, 2023[223](index=223&type=chunk)[224](index=224&type=chunk) - There were no changes in internal control over financial reporting during Q2 2023 that materially affected, or are reasonably likely to materially affect, internal controls[225](index=225&type=chunk) PART II. OTHER INFORMATION [Item 1. Legal Proceedings](index=51&type=section&id=Item%201.%20Legal%20Proceedings) Court ruled in favor of Markel Group in Thomas Yeransian lawsuits on June 8, 2023, with decision appealed and company believing material loss is remote - In the Thomas Yeransian v. Markel Corporation lawsuits, the court ruled in favor of the company on all counts on June 8, 2023, with the plaintiff appealing the decision[226](index=226&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=52&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During Q2 2023, company repurchased **78,017** common shares at **$1,341.65** per share, with **$323.8 million** remaining for future repurchases Issuer Purchases of Equity Securities - Q2 2023 | Period | Total Shares Purchased | Average Price Paid per Share | Value Remaining for Repurchase (end of period) | | :--- | :--- | :--- | :--- | | April 2023 | 23,900 | $1,326.43 | $396,736,000 | | May 2023 | 27,686 | $1,351.15 | $359,328,000 | | June 2023 | 26,431 | $1,345.46 | $323,766,000 | | **Total Q2** | **78,017** | **$1,341.65** | **$323,766,000** | [Item 5. Other Information](index=52&type=section&id=Item%205.%20Other%20Information) Steven A. Markel, Chair of the Board, adopted a Rule 10b5-1 trading arrangement on May 31, 2023, for potential sale of up to **1,398** common shares - Steven A. Markel, Chair of the Board, adopted a **Rule 10b5-1 trading plan** on May 31, 2023, for the sale of up to **1,398** common shares[230](index=230&type=chunk) [Item 6. Exhibits](index=53&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with Form 10-Q, including amended bylaws, credit agreements, employment agreements, and required CEO/CFO certifications - Key exhibits filed include **amended Bylaws, an Amended and Restated Credit Agreement, forms of Executive Employment Agreements, and CEO/CFO certifications**[232](index=232&type=chunk)[234](index=234&type=chunk) [Signatures](index=55&type=section&id=Signatures) The report was duly signed on August 2, 2023, by CEO Thomas S. Gayner and CFO Teresa S. Gendron - The Form 10-Q was signed on **August 2, 2023**, by CEO Thomas S. Gayner and CFO Teresa S. Gendron[236](index=236&type=chunk)[237](index=237&type=chunk)

Financial Data and Key Metrics Changes - The consolidated combined ratio for Q1 2023 was 94%, up from 89% in Q1 2022, reflecting higher attritional loss ratios and less favorable development on prior accident year's loss reserves [4] - Net income to common shareholders was $489 million for Q1 2023, compared to a net loss of $52 million in the same period last year, largely due to changes in public equity portfolio valuation [33] - Recurring investment income grew to $159 million, up from $92 million year-over-year, driven by higher interest rates [11][39] Business Line Data and Key Metrics Changes - Gross written premiums in the insurance segment increased to $2.7 billion in Q1 2023, a 6% rise from $2.5 billion in Q1 2022, with notable growth in personal lines, property, and marine and energy product lines [10] - Markel Ventures revenues increased by 16% to $1.1 billion in Q1 2023, up from $950 million in the same quarter last year, with EBITDA rising 25% to $120 million [5][17] - The reinsurance segment reported a combined ratio of 91, improved from 95 a year ago, despite a 4% decrease in gross written premiums [15] Market Data and Key Metrics Changes - The retention of gross written premiums was 83% in 2023, down 3 points from the previous year, attributed to higher session rates in professional liability and personal lines [10] - Rates across the portfolio are holding up well, with increases of 5% to 10% in many products, although property rates have accelerated more significantly [16] Company Strategy and Development Direction - The company emphasizes long-term growth and profitability, focusing on underwriting discipline and rate adequacy, willing to walk away from business that does not meet profitability targets [8][35] - Management is optimistic about mid and long-term profitable growth objectives, despite acknowledging current market uncertainties [16][58] Management's Comments on Operating Environment and Future Outlook - Management expressed caution regarding the current level of uncertainty in insurance market conditions, particularly around loss trends and inflation [14][63] - The company is seeing a strong new business pipeline, particularly in specialty market solutions, despite some competitive pressures [16][25] Other Important Information - The company repurchased $81 million of its shares in Q1 2023, consistent with its share repurchase program [9][12] - The fair value of the equity portfolio included cumulative unrealized holding gains of $4.9 billion as of March 31, 2023 [11][18] Q&A Session Summary Question: Are you seeing signs of economic slowdown within Markel Ventures? - Management noted that the 16% growth rate suggests resilience, but acknowledged the diverse nature of the business [23] Question: Can you elaborate on the reserve release related to the CATCo unit? - The reserve release is neutralized by a higher minority interest charge, highlighting favorable reserve runoff [42][43] Question: How do you reconcile the pricing environment with the need for higher accident year margins? - Management indicated that rising interest rates and social inflation necessitated a cautious approach, leading to increased margins for safety [44] Question: What are your thoughts on achieving the 10-5-1 aspirational goals? - Management emphasized that while premium growth is important, underwriting profitability remains the primary focus, and they are not strictly bound to numerical targets [57][58]